Fundamentals of Corporate Finance, 6th Edition Spreadsheet Templates MAIN MENU -- Chapter 21 Instructions Challenge Problem 14

Copyright 2009 McGraw-Hill/Irwin

Copyright 2006 McGraw-Hill/Irwin

Copyright 2006 McGraw-Hill/Irwin

Fundamentals of Corporate Finance

Sixth Edition Instructions
Navigating the Workbook Entering your information Entering data Printing Navigating the Workbook Each chapter of the spreadsheets to accompany Fundamentals of Corporate Finance contains links to help you navigate the workbook. These hyperlinks help you move around the workbook quickly. The Main Menu contains links to each problem from the chapter that contains the Excel icon. From the Main Menu, click on the question you wish to complete. You can always return to the main menu by clicking on the link located in the upper right corner of each worksheet. You can move quickly around an Excel workbook by selecting the worksheet tab at the bottom of the screen. Each worksheet in an Excel workbook will have its own tab. In the spreadsheets to accompany Fundamentals of Corporate Finance, you will see a separate tab for each problem, along with the Main Menu, Instructions and Help Topics worksheets. Another way to move quickly around an Excel workbook is by using the following keyboard shortcuts: CTRL+PAGE DOWN: Moves you to the next sheet in the workbook. CTRL+PAGE UP: Moves you to the previous sheet in the workbook.

Main Menu

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Entering your information For each question, you will see the following lists and boxes:
Student Name: Course Name: Student ID: Course Number:

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Enter your information in these cells before submitting your work. Entering data To enter numbers or text for these questions, click the cell you want, type the data and press ENTER or TAB. Press ENTER to move down the column or TAB to move across the row. For cells or columns where you want to enter text, select Format, and then Cells from Excels main menu at the top of your screen. Select the Number tab and then Text from the category list. Printing To print your work, select "File," and then "Print Preview" from Excels main menu at the top of your screen. The print area for each question has been set, but be sure to review the look of your print job. If you need to make any changes, select Setup when you are previewing the document. Top Top

Copyright 2009 McGraw-Hill/Irwin

Copyright 2009 McGraw-Hill/Irwin

Chapter 21 Challenge Problem 14: Merger Gains and Costs

Student Name: Course Name: Student ID: Course Number: Use the data in the table below and enter the indicated formulas to complete the requirements of this problem.

Forecast EPS Forecast DPS Shares Price per share Current growth Merged growth

Leisure Products $5.00 $3.00 1,000,000 $90.00 6% 8%

Plastitoys $1.50 $0.80 600,000 $20.00

a) Expected return on Plastitoys Price per share of Plastitoys post merger Value of the combined firm Cost of acquisition Gain from acquisition b) Total cost Less gain Net cost FORMULA FORMULA #VALUE!

FORMULA FORMULA FORMULA FORMULA #VALUE!

c) Number of shares of Leisure Products to be offered Share outstanding after merger Value of merged firm Price per share of merged firm Cost of merger d) Value of Plastitoys after Merger Total shares Share price Cost of merger FORMULA FORMULA #VALUE! FORMULA

FORMULA FORMULA FORMULA #VALUE! FORMULA

Copyright 2009 McGraw-Hill/Irwin